25 Jan

UASA Media Release: 25 January 2024

Statement by Abigail Moyo, spokesperson of the trade union UASA:

Following the SA Reserve Bank’s (SARB) extensive insight into several economic conditions, including the 2024 outlook, inflation rates and Gross Domestic Product (GDP), UASA welcomes the Monetary Policy Committee’s (MPC) decision to keep the repo rate at 8.25%.

The prime lending rate of local commercial banks also remains unchanged at 11.75%, against the recent depreciation of the Rand against international currencies and the international oil price increasing, both factors that play a big role in the inflation expectations and our economy.

The SARB explained that the guiding inflation expectations back towards the mid-point of the target band will improve the economic outlook and reduce borrowing costs. The SARB’s targeted band is 3-6%.

While easing inflation strikes a ray of hope for consumers and workers, the bank has warned that the risks to the inflation outlook remain on the upside, around food inflation, power, logistics, and infrastructure crises. These prevalent challenges are a downside to consumers still bound by high living costs resulting from previous high inflation rates.

The MPC also noted that while the repo rate remained unchanged, future interest rate decisions will depend on new data, and keeping rates on hold should not necessarily be construed as the end of the rising cycle. This is the fourth consecutive time the central bank has decided to keep rates steady, following an aggressive hiking cycle of 475 basis points since late 2021.

UASA also welcomes Governor Lesetja Kganyago’s announcement of appointing a new member – David Fowkes, who replaces Kuben Naidoo, who resigned from the committee late last year.

For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.









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